Rent vs Own

There are some basic rules of real estate, which I'm sure you have been told:

1. Location, Location, Location
2. Buy the least expensive home in the best neighborhood
3. Purchase what you can afford.
4. It is better to own than to rent.

The last sentence seems to be facing some challenges with our soft market, but I believe it's as true now to own rather than to rent. as long as you realize, it is a long term investment. Lawrence Yun, chief economist for the National Association of Realtors reported the following data from the Federal Reserve, "The median wealth accumulation for renters from 1995-2004 was $4000. The median wealth accumulation of a homeowner was $184,000". If you know you'll be living in a place over a few years, it's foolish not to own, in my humble opinion. There is an income tax deduction on the interest paid, and assuming you pay principle in your mortgage payment, you are increasing equity in your property. Both of these facts happen, even if the property does not appreciate, (increase in market value0, at all.

We are in a correcting market for the past two years, but the sales data from MLSNI is showing signs of more pending sales, and more closings. What should you do? First, get some expert advice from a professional Windy City Realtor. This Realtor will guide you to buy the best value, in the strongest location with the least risk of detrimental conditions, at a fair price. We show you the latest comparable sols, price trends within neighborhoods and towns. Secondly, talk to a mortgage originator recommended by your Realtor. Start thinking of budgeting maintenance, and repair costs of home ownership--at that, consider either negotiating a home warranty from the Seller or buying it for yourself. Third, you must do an inspection. Your Realtor maybe able to see some faults of a property, but a good home inspector will be looking at the guts of the home, and will explain during the inspection maintenance issues. Fourth, don't rush the process. Have a criteria for purchase and shop for a few homes, it's great to have alternative properties while negotiating.

The market has a great selection and prices have come down in many neighborhoods. In short, there are some great buys available right now! Take advantage of this opportunity in the market: It is better to own rather than rent in the long run.